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An important announcement from the Ministry of Labor regarding employment contracts for employees in the “private” sector
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The provisions and articles of the two decrees of two federal laws regarding the regulation of labor relations and the general unified rules of work in the state appeared to be in force

The provisions and articles of the two decrees of two federal laws regarding the regulation of labor relations and the general unified rules of work in the state appeared to be in force, with the aim of enhancing the efficiency of the labor market and attracting and maintaining the best competencies and future skills from employment.

With the beginning of the implementation of the Federal Decree Law on regulating labor relations, a year period begins (ending on February 2, 2023, with the possibility of extension) to convert “unlimited” work contracts for private sector employees, to “fixed term” contracts, with no more than three years, and by agreement of the two parties, this contract may be extended or renewed for similar or lesser periods once or more.

It is scheduled to start converting indefinite-term work contracts into fixed-term employment contracts, in accordance with the conditions, controls and procedures contained in this decree-law, within a period of one year from the date of its entry into force (starting today), and the Council of Ministers may extend this period to other periods as required by the public interest.

The decree-law specified one type of contracts in terms of duration, which is a fixed-term contract of no more than three years. With the agreement of the two parties, this contract may be extended or renewed for similar or lesser periods once or more, indicating that the provisions of the decree-law apply to indefinite employment contracts.